Solid results for Wal-Mart in the U.S.

Posted May 20, 2017

Wal-Mart's president and CEO, Doug McMillion, commented "Our plan is gaining traction, and I want to thank our associates for their hard work, ingenuity and commitment to our customers".

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In the second quarter, Wal-Mart expected to achieve earnings of around $1.00 to $1.08 per share. That means for nearly three years now, stores open at least 12 months have posted year-over-year sales gains - nearly unheard of in the current retail environment, where companies like Sears, JCPenney, Macy's, and many others are facing imminent destruction. Grocery is a key category because it drives shoppers frequently to the store and they are then likely to pick up other items. He noted that results have been volatile week to week since Christmas. Growth in EPS is an important measure of management performance because it shows how much money the company is making for it's shareholders, not only due to changes in profit, but also after all the effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition). Best of all, same-store sales were up 1.8% versus estimates of only 1.3%. Target is now using about 1,000 stores for direct shipping in a bid to match Amazon's free, two-day delivery available to its Prime customers. Although sales fell a bit short of expectations and per-share profits were down by a fair amount, earnings topped expectations. "Online grocery also continues to perform well and we're on track to scale the offering to more stores this year in several countries, including the U.S". Looking at this figure it suggests that the shares of Wal-Mart Stores Inc. However, sales of those items strengthened as the quarter progressed.

All traditional stores have struggled as Amazon and other online retailers draw shoppers away. All that, and competitive reactions it inevitably provokes, means more pressure to cut prices and costs. But Cornell found those efforts were not paying off.

Wal-Mart has been pumping funds into improving its in-store experience, upgrading stores and boosting worker pay, at the same time that it builds out its e-commerce business.

Valuation Ratios of Wal-Mart Stores, Inc. Those investments appear to be paying off.

Target said it's been seeing significant market share gains across clothing, including women's, children's and swimwear.

Beta is also an important valuation ratio for analyzing the stock of the company, WMT has Beta of 0.31 while its industry and Sector's beta remains at 0.59 and 0.67 respectively.

Amazon Dash is a similar concept, where customers can restock products by brands like Tide, Glade or Gatorade, with the push of a button. It will be expanded to customers in the Minneapolis area this summer.

Adopting free two-day shipping on minimum orders of $35 without an Amazon Prime-like annual fee appears to be a victor. On a per-share basis, it earned $1.

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